The SEC has once again delayed its decision on approving or rejecting spot Ethereum ETF applications from BlackRock and Fidelity. This delay, announced in separate filings on March 4, follows a previous delay in January. The SEC can defer its decision up to three times before making a final ruling. Analysts have been pointing to May as a crucial month for these ETFs, with May 23 being highlighted as a significant date, especially for VanEck's spot Ethereum ETF application. Despite the delay, the price of Ether has continued to rise, driven by broader market optimism about potential ETF approval. Ether has seen a 56.7% increase in the last month, reaching $3,754 at the time of publication, up 13% for the week. However, some analysts remain cautious about the impact of a spot Ethereum ETF compared to Bitcoin ETFs. BlackRock's iShares Bitcoin ETF, for example, has already amassed $10 billion in assets under management, indicating that the potential impact of Ethereum ETFs may not be as significant.
Bloomberg ETF analysts James Seyffart and Eric Blachunas are expected to provide formal odds on an ETH ETF approval soon. However, they have described the yet-to-be-approved funds as "small potatoes" compared to the Bitcoin funds, suggesting that the impact of Ethereum ETFs may be more muted compared to their Bitcoin counterparts.
Hong Kong Securities Regulator Blocks Fake Cryptocurrency Exchange Websites
Hong Kong's Securities and Futures Commission (SFC) has taken action against fake crypto exchange websites that were impersonating licensed cryptocurrency trading platforms. On March 4, the SFC issued an official warning regarding several suspicious websites impersonating OSL Digital Securities and Hash Blockchain Limited, both licensed exchanges in Hong Kong. The fake domains included variations of the legitimate exchange names, such as hskexpro.com, hskex.com, hskexs.com, hskexit.com, oslexu.com, and oslint.com. These actions were prompted by reports of difficulties with fund withdrawals and high fees and commissions for withdrawals.
The SFC, in collaboration with the Hong Kong Police Force, has blocked access to these fraudulent websites. This move is part of the SFC's efforts to protect investors from falling victim to scams in the cryptocurrency space. The regulator has advised investors to verify the legitimacy of trading platforms by checking its public register of licensed persons and registered institutions, as well as the list of licensed virtual asset trading platforms.
Detecting fake crypto websites can be challenging, especially for new visitors. Bartosz Barwikowski, a security expert at Hacken, emphasized the importance of relying on trusted third parties rather than search engines or social media channels to verify the authenticity of websites. Barwikowski suggested using mobile apps instead of websites, as they are more difficult to fake. He also recommended checking the website of a trusted third party, such as a government website or cer.live, for reviews before trusting a platform.
Taiwan Plans to Implement New Digital Currency Laws in September
Taiwan's Financial Supervisory Commission (FSC) is set to propose new digital asset regulations in September 2024, aimed at creating more effective oversight and investor protection in the digital asset markets. The FSC Chairman, Huang Tien-mu, highlighted the need for stricter regulations to safeguard investors against potential fraud risks associated with digital currencies. He also emphasized the growing interconnectedness between digital assets and the traditional financial system, highlighting the need to protect the stability of the legacy financial system from the risks posed by digital assets.
The proposed regulations are part of Taiwan's efforts to enhance its regulatory framework for digital assets. The country's legislators introduced the Virtual Asset Management Bill to parliament in October, aiming to provide better protection for customers and properly supervise the industry. The bill includes provisions for fines for unlicensed virtual asset service providers (VASPs) and is part of Taiwan's broader strategy to regulate the digital asset space more effectively.
In addition to the new regulations, Taiwan's Chamber of Commerce is set to release a study on Bitcoin exchange-traded funds (ETFs) in April. While Taiwan is considering the acceptance of spot Bitcoin ETFs under its regulatory purview, the FSC has cautioned against investing in foreign crypto-based exchange-traded products. The FSC's regulatory efforts aim to ensure that Taiwan's digital asset ecosystem operates within a secure and regulated framework, protecting investors and the stability of the financial system.
